Remember Enron, Bernie Madoff, Worldcom… In what has to be a colossal poster child for how laughable the audit process can be, Ernst & Young, accused their client Wirecard of “an elaborate and sophisticated fraud” that allowed more than $2 billion to go missing. E&Y
It’s important to understand what happens to profit margins in a recession. And make no mistake, we are very early in the recession that will most likely last well into 2021 in a best-case scenario. The hope for recovery based on record amounts of liquidity
It’s not real. The market has no true price discovery. We really don’t know what things are worth if the central banks were not printing money. Federal Reserve Chairman Powell told us this week the FOMC expects to keep rates near zero for a few
It is said that bond investors understand the path of the economy far better than stock investors. And at times, like this, it all can be somewhat irrational. The current economic backdrop is a strong case in point—talk about confusing. Stock investors often get caught
It is almost like it never happened—incomprehensible! How can the market just look past the biggest economic shock in history like it never happened? Is the central bank printing press that powerful? Is it “bullish” that the central bank needs to monetize debt going forward
Ronald Reagan was shot 69 days after inauguration. The former Screen Actors Guild liberal leaning union leader turned conservative used the massive sentiment of the event as a catalyst to launch the Reagan Revolution. He boosted military spending, cut taxes, reduced federal spending, and reduced
As a thoughtful libertarian from the Austrian school of economics I believe governments participation in the economy should be minimal. Limited to creating an equal opportunity playing field for all (not equal outcome) and help set the rules for the pursuit of happiness. I adore
China’s desire to be the number one economy in the world started long before Donald Trump shook his finger at China. President Trump is a master at many things. He’s the best at fighting with people. By suggesting China lied to the world about COVID-19,
The most frequent question I have received over the past few weeks of April has to be tied to the Fear of Missing Out (FOMO). What if the bottom is in? What if we make new highs? That has certainly been the conditioning for the
I’ve written about the Value Line Geometric Average before and what it represents. I recommend readers review the following to get a better understanding. The geometric average better represents the realized return that most investors experience from the average stock. For the US markets, the